“How did Steve Jobs changed the world”
FINDINGS & RECOOMMENDATIONS
“If you haven't found it yet, keep looking. Don't settle. As with all
matters of the heart, you'll know when you find it. And, like any
great relationship, it just gets better and better as the years roll
ZYAD AHMED DIRAR
FACULTY OF BUSINESS ADMIN.
Overview of the Organization
The company was founded on April 1, 1976, and incorporated as
Apple Computer, Inc. on January 3, 1977. The word "Computer" was
removed from its name on January 9, 2007, the same day Steve Jobs
introduced the iPhone, reflecting its shifted focus towards consumer
Apple Inc., formerly Apple Computer, Inc., is an American
multinational corporation headquartered in Cupertino, California that
designs, develops, and sells consumer electronics, computer software
and personal computers.
Apple is the world’s-second largest information company by revenue
after Samsung Electronics, and the world’s-Third largest phone maker
after Samsung and Nokia. Fortune magazine named Apple the most
admired company in the United States in 2008, and in the world from
2008 to 2012. However, the company has received criticism for its
contractor’s labor practices, and for Apple's own environmental and
As of May 2013, Apple maintains 408 retail stores in fourteen
countries as well as the online Apple Store and iTunes Store, the latter
of which is the world's largest music retailer.
Profile of the Organization
Founded: April 1, 1976
Founder(s): Steve Jobs
: Steve Wozniak
: Ronald Wayne
Industry: Computer Hardware: Computer Software
: Consumer Electronics
: Digital Distribution
Headquarters: Apple Campus, 1 Infinite Loop, Cupertino California, U.S.
Number of locations: 406 retail stores
Area served: Worldwide
Key people(s): Tim Cook (CEO)
: Arthur D. Levinson (Chairman)
: Steve Jobs(Founder, former CEO)
Revenue: US$ 156.508 billion (2012)
Operating income: US$ 055.241 billion (2012)
Net income: US$ 41.733 billion (2012)
Total assets: US$ 176.064 billion (2012) Employees: 80,000 (2013)
Issues of the Organization
Apple’s key competitors are Google, Samsung, Microsoft and many more.
Google’s Android has more market share than Apple’s iOS and in the phone
making Apple is facing strong competition from Samsung.
Criticism for Apple maps
Apple launched its Google Maps replacement and while that’s not much
times to overhaul such a massive undertaking. Apple Maps were a
catastrophe as they majority of the times were not accurate and directed its
users or stranded them at some unknown place.
Customer loyalty combined with expanding
Apple is a leading innovator in mobile device
Strong financial performance
($10,000,000,000 cash, gross profit margin
43.9% and no debt)
Strong marketing and advertising teams
Incompatibility with different OS
Decreasing market share
Further changes in management
Defects of new products
Long-term gross margin decline
High demand of iPod mini and phone 5
Emergence of the new provider of application processors
Growth of tablet and Smartphone markets
Obtaining patents through acquisitions
Damages from patent infringements
Strong growth of mobile advertising market
Increasing demand for cloud based services
Rapid technological change
2013 tax increases
Rising pay levels for Falcon workers
Breached IP rights
Price pressure from Samsung over key components
Android OS growth
Competitors moves in online music market
1. Customer loyalty combined with expanding closed ecosystem. While at first
Apple’s closed ecosystem was a weakness for the business, this has now
changed. First, Apple now has a full range of apps, software and products
that are interlinked and support each other. Second, new products and
supplements will be released soon (it), hence expanding the ecosystem.
Third, Apple has a strong customer loyalty, which increases due to Apple’s
closed ecosystem, which, in turn, is supported by customer loyalty. So the
combination of Apple’s expanding closed ecosystem and customers’ loyalty
increases firm’s competitive advantage.
2.Apple is a leading innovator in mobile device technology. Apple has been
chosen as the most innovative business in the world for the 3rd time in 2012.
Company’s core competency of producing innovative products is the strength
the company builds upon and is able to bring the most innovative products to
3.Strong financial performance ($10,000,000,000 cash, gross profit margin
43.9% and no debt). Apple’s financial performance is one of the best among
many companies. Currently Apple has no debt and is not directly affected by
interest rates or credit markets.
1.High price. Apple’s products cost much more than its competitors devices.
Some critics argue that the price is not justified. When there’s such a fierce
competition, Apple products price becomes a weakness because consumers can
easily opt for similar quality but lower price products.
2.Incompatibility with different OS. The ions and OS X are quite different from
other OS and uses software that is unlike the software used in Microsoft OS.
Due to such differences, both in software and hardware, users often choose to
stay with their accustomed software and hardware (Microsoft OS and Intel
3.Decreasing market share. The less market share Apple has, the less it can
influence its potential customers and persuades them to jump into using Apple’s
closed ecosystem products.
1.High demand of iPod mini and phone 5. IPod mini sales will increase
Apple’s market share in the tablet market and, will strengthen firm’s
2.Itv launch. iTV launch will support Apple TV sales and the products’
3.Growth of tablet and smartphone markets. Growth of tablet and
smartphone markets is a good opportunity to expand firm’s share in these
1.2013 tax increases. Tax increases in USA in 2013 will negatively affect
2.Rising pay levels for Foxconn workers. Pay levels for Foxconn’s workers
already rose 3 times from 2010 to 2012. Foxconn is the main manufacturer
of Apple products and the rising pay level for Foxconn’s workers will likely
raise the prices for Apple products.
3.Breached IP rights. The companies that breach Apple patents might not be
discovered soon and may benefit from it, while weakening Apple at the
Findings & Recommendations
Apple cannot market iPhones in Brazil because another company owns the
The Brazilian telecommunications company IGM Electronica owns the
brand Gradiente, which filed for exclusive rights to the name “iPhone” in
2000, before Apple had produced its iPhone. It took seven years but
eventually the rights were granted, and the G-Gradiente iPhone was
launched in 2007.
According the Financial Post, Apple Inc. grew richer than Uncle Sam,
having more cash on hand than the entire U.S. had spending room. This was
due to the debt ceiling crisis of July 2011. Apple Inc. boasted cash reserves
of $75.88 billion while Washington had an operating balance of $73.77
A major difference, however, is that Apple’s figure refers to its reserve of
cash, the government’s value is the amount of spending room it has before
reaching an arbitrary debt ceiling.
Apple now has the highest market value of any private company in the
world. Apple once had more cash in the bank than the US Treasury had
money to spend.Apple Inc. is sitting at $416.6 billion. Exxon-Mobile is
second at $400.4 billion.
Apple has more than 300 stores in 11 countries, and its retail division has
become a hugely important part of the company's business, selling millions
of iPods, Macs, iPhones, and iPads.
Scale up its production capabilities.
Every time Apple releases a hot new gadget, customers can't get it. This is a
consequence of Apple's legendarily precise just-in-time manufacturing system.
Apple never wants to make more devices than it will sell, so it ramps up
manufacturing in lock step with demand. That reduces its inventory costs and thus
boosts its profit, but Apple's production is still too slow to keep up with instant
spikes in demand. Is it possible for Apple to build products any faster than it does
now? If money is no object, sure: It could set up factories in many different
countries and it could invest in next-generation production capabilities that might
pump out iPhones even faster (for instance, robotic assembly lines, which have the
added benefit of not raising any concerns about factory conditions).
1.Steve Jobs by Walter Isaacson